Advice for Making Your Bill Payments

Do you use late notices as a reminder to pay your bills? Does your checking account seem to be made of rubber? Irregular bill-paying habits make you a credit risk, and may jeopardize a future car loan, an apartment or even a job. The good news is that with some careful planning and an assertive mind-set, you'll have a bounce in your step-instead of in your checking account.

Steps

1 Designate two days per month to attend to your bills, say the first and the 15th, perhaps on the days you get paid. Make it the same time every month and mark these days on your calendar. If your major bills are due at different times, find out if you can change the payment due date. Sometimes you can do this on the company's Web site.

2 Check your account before you start-you don't want any surprises. Most banks let you access your account balance online, at ATMs or by phone.

3 Devote a corner of the house, preferably quiet and out of the way, to paying your bills. Ideally, you have a special desk for keeping all of your financial records and checkbook.

4 Label bills "pending" or "paid." As soon as they arrive, place them in a designated bill file for easy access.

5 Keep a clean checkbook. When you pay a bill, record the bill as "paid" in your checkbook. It reduces the chance of mistakes.

6 Make fast and easy work of your bills with a program like Quicken (quicken.com) or Microsoft Money (microsoft.com/ money) to keep tabs on your bills. Set it up to provide automatic reminders of which bills are due. A good software program comes in handy around tax time, since all your bill payment records are in one place.

7 Set up online bill paying with your bank. Most banks let you pay any company or individual in the United States-your credit-card company, the phone company, even your roommate-all from your computer for free or a small monthly fee. Pay multiple bills at once and choose the day when each will be paid. Save the hassle of buying and finding stamps and envelopes.

8 Go completely virtual and receive your bill online from select merchants such as your phone, utility and insurance companies, department stores and so on. Most companies love to see you pay your bills online. In fact, interest rates for some larger bills, such as mortgages and student loans, can be negotiated downward if you pay online.

9 Keep it simple. If you're spending more than an hour a month paying bills, it's time to reassess your plan.

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